The Fall of a Gwanggyo 'Hot Place'? ALLEYWAY GWANGGYO Faces Commercial Crisis Amid Successive Vacancies

A commercial district that was once considered a representative 'hot place' in Gwanggyo, Suwon, recording 5 million tourists, is recently suffering from serious vacancy issues. In the case of 'ALLEYWAY GWANGGYO', which opened in 2019, it once buzzed with energy as unique stores gathered, but currently, the commercial downturn is becoming visible as vacancies appear in a row along the internal walkways.

'Vicious Cycle of Vacancies' Caused by Poor Accessibility and High Operating Costs

According to a video from the YouTube channel 'Jayeongeop Diary', the causes of the stagnation in ALLEYWAY GWANGGYO are pointed to as locational limitations and the burden of costs. Although the commercial district is located near Gwanggyo Lake Park, it is pointed out that accessibility is low due to the structural characteristic that it is not directly connected to the lake walking trail and must be accessed by climbing stairs. Analysis suggests that in the early stages of opening, 'destination visits' were possible as customers sought it out due to SNS buzz, but after the novelty wore off, the low accessibility acted as a disadvantage.

Cost issues are also cited as a major cause. The video mentioned that in the past, high parking fees were a factor that prevented customers from revisiting. Additionally, the operating burden on the tenant businesses was also shown to be significant. ALLEYWAY GWANGGYO applied a commission-based store model where a certain percentage of sales is paid as a fee; the explanation is that when sales were high, the commission burden was heavy, and when sales declined, the structure made it difficult to cover fixed management fees and labor costs. This operating burden eventually led to store withdrawals, and a 'vicious cycle' repeated where vacancies were created again in the spaces left by departing stores, causing the vitality of the commercial district to drop sharply.

Concentration in Surrounding Commercial Districts and the Importance of MD Composition

Changes in the competitive structure within the commercial district also acted as a variable. Since ALLEYWAY GWANGGYO opened, large-scale commercial facilities such as Galleria Department Store, LOTTE OUTLETS, and AVENUE FRANCE near Gwanggyo Jungang Station have been grouped into one massive commercial district, and analysis shows that ALLEYWAY GWANGGYO's unique differentiation weakened as customers concentrated in other main commercial districts near the lake park. As customers flocked toward the more developed commercial areas, ALLEYWAY GWANGGYO's position has relatively narrowed.

Synthesizing the opinions of field officials, it appears that appropriate MD (merchandising) reorganization and efficient operation by the management group will be necessary for the future recovery of the commercial district. An individual appearing in the video predicted, "If the MD composition is properly adjusted and the management group operates well, it is a place that can definitely do well again." In the field of self-employment, maintaining the momentum for customers to visit continuously, rather than a one-time hit, was presented as a key task for the survival of the commercial district.